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Happy Tree Friends - Season 3, Episode 03: We're Scrooged!
In the beginning of season 3, Pop buys a book and reads it to Cub. As Pop reads the story, Cub gets more and more worried, and as a result, he wakes up the next morning in a zombie-like state. The friends begin to die when an octopus, a monster in Cub' head, appears in their house.